Rational addiction to alcohol: Panel data analysis of liquor consumption

Badi H. Baltagi, James M. Griffin

Research output: Contribution to journalArticlepeer-review

41 Scopus citations


Utilizing a panel data set of 42 states over the period 1959-1994, this paper estimates a rational addiction model for liquor consumption for the US. The empirical evidence is consistent with the rational addiction hypothesis proposed by Becker and Murphy. However, the results are sensitive to the assumption of homogeneity across states or over time.

Original languageEnglish (US)
Pages (from-to)485-491
Number of pages7
JournalHealth Economics
Issue number6
StatePublished - Sep 2002
Externally publishedYes


  • Heterogeneous panel
  • Liquor demand
  • Panel data
  • Rational addiction

ASJC Scopus subject areas

  • Health Policy


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